Consumers’ possible strategies under beliefs (p = ρ; q)

Conditions

1) “Always inspect”

c i < min ( d ρ + ( e e ρ d ρ ) x , e ( 1 q ) ( e e q d q ) y )

2) “Inspect negative, not inspect positive”

e ( 1 q ) ( e e q d q ) y < c i < d ρ + ( e e ρ d ρ ) x

3) “Not inspect negative, inspect positive”

d ρ + ( e e ρ d ρ ) x < c i < e ( 1 q ) ( e e q d q ) y

4) “Always not inspect”

c i > max ( d ρ + ( e e ρ d ρ ) x , e ( 1 q ) ( e e q d q ) y )